According to official data, biomass represents the most significant potential of renewable energy sources in the Republic of Serbia. It accounts for about 63% of the total potential, but for now its use is not at a satisfactory level. In total amounts of 14,2·104 TJ, it is estimated that about 9,6·104 TJ is unused. This is still evidently a large available potential, especially in agricultural biomass, with the exception of the binding share of biofuels in the transport sector, whose annual potential is around 7,1·104 TJ. The main obstacles for more intensive biomass processing continue to be the high costs of manipulation, the dispersion of land holdings and especially the time mismatch in the production, processing, and use of biomass, which certainly increases storage costs. In the former analyzes, the most widespread use in households, biomass has in direct combustion and production of thermal energy, or in the production of pellets and briquettes, where it is still less represented in relation to forest biomass. Although in the last few years the growth trend of biogas power plants is growing, and the total installed capacity is about 20 MW, this sector has the greatest potential for development in the coming years, especially in local communities, that are primarily focused on agricultural production. The paper deals with the condition analysis of the production, processing, transport, and the possibility of applying agricultural biomass, for the purpose of cogeneration electricity and heat production. The impact of the use of biomass on the protection and sustainability of the environment is also considered, through the analysis of a case study on the examples of territorial units in Vojvodina.